EUR/USD Forex Signal

Yesterday’s signals were probably not triggered, as the bullish rejection of the support at 1.1325 did not happen until just before the close of the London session and also the hourly close took place below the level, but if a long trade had been taken there it would be at about break even now and should probably best be closed.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be taken before 5pm London time today.

Short Trades

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1344 or 1.1397.

• Place the stop loss 1 pip above the local swing high.

• Move the stop loss to break even once the trade is 20 pips in profit.

• Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

Long Trade

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1276.

• Place the stop loss 1 pip above the local swing high.

• Move the stop loss to break even once the trade is 20 pips in profit.

• Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

EUR/USD Analysis

I wrote yesterday that the Euro had been selling off since this week’s market opened in Asia a few hours ago. This suggested a mildly bearish outlook so I thought it was more likely that the price would fall at least a little over the London session yesterday. This was a good call and reflected what happened, although the area at about 1.1325 was ultimately supportive. However, the price is weighing heavily there and now this support looks as if it is going to break down – the Euro is weak, and the Dollar is strong. The support below at 1.1276 is a key level as below that the price will begin to reach significant long-term lows. If the price can trade below 1.1325 for a couple of hours after London opens and shows some significant bearish movement, I would take a bearish bias on this currency pair today.

There is nothing of high importance due today concerning either the EUR or the USD.